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Cabinet Decree 5 of 2003.

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  • TypeCabinet Decree
  • 5
  • Date2003

Summary.

Cabinet Decree 5 of 2003 governs the management of the Republic of Panama’s external bonds in international capital markets. It authorizes transactions involving those bonds and assigns responsibility for their execution and payment.

What it covers.

  • The purchase, exchange, and redemption of external bonds.
  • The execution of bond issuances and their documents.
  • The hiring of participants in the transactions.
  • Budget provisions for payment obligations.

Who it applies to.

  • The Ministry of Economy and Finance (Ministerio de Economía y Finanzas).
  • Officials authorized to execute the transactions.
  • The Executive Branch (Órgano Ejecutivo).
  • Panama’s Consul General in New York.

Key points.

  1. The Ministry of Economy and Finance (Ministerio de Economía y Finanzas) is authorized to purchase, exchange, and redeem external bonds, pay accrued interest, and cancel bonds purchased, received in exchange, or redeemed.Art. 2
  2. The Minister of Economy and Finance, together with the President of the Republic, sets the final terms of the issuances and authorized transactions.Art. 3
  3. The decree authorizes an increase in the Republic of Panama’s shelf registration with the United States Securities and Exchange Commission to US$1,000,000,000.00.Art. 4
  4. The decree authorizes the preparation and circulation of prospectuses for the issuances and the negotiation and execution of related bond contracts and documents.Art. 6, Art. 7
  5. Authorized officials sign the bonds; the Comptroller General or, in the Comptroller General’s absence, the Deputy Comptroller General countersigns them.Art. 8
  6. Panama’s Consul General in New York receives judicial notices as agent for service of process in matters involving the authorized bonds, contracts, and transactions.Art. 9
  7. The Executive Branch (Órgano Ejecutivo) includes funds for obligations arising from the transactions in its budgets; the Ministry can directly hire participants in those transactions.Art. 10, Art. 11
  8. Before issuing the bonds, the Ministry verifies compliance with the public debt levels prescribed by Law 20 of May 7, 2002.Art. 12